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FCG - ETF AI Analysis

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FCG

First Trust Natural Gas ETF (FCG)

Rating:71Outperform
Price Target:
FCG, the First Trust Natural Gas ETF, has a solid overall rating, mainly because several of its largest holdings like Diamondback Energy (FANG), Permian Resources (PR), and Western Midstream Partners (WES) show strong financial performance, supportive technical trends, and effective strategic moves that bolster the fund’s quality. However, holdings such as Occidental Petroleum (OXY) and Ovintiv (TSE:OVV) introduce some caution due to high valuations, bearish technical signals, and other financial challenges, and the fund’s focus on natural gas and related energy names means investors are exposed to sector-specific and commodity price risks.
Positive Factors
Strong Recent Performance
The ETF has delivered strong gains so far this year, helped by solid results from many of its holdings.
Leading Energy Companies in Top Holdings
Several of the largest positions, such as EOG Resources, ConocoPhillips, and Occidental Petroleum, have shown strong performance, supporting the fund’s overall returns.
Focused Exposure to Natural Gas and Energy
The fund’s heavy tilt toward the energy sector gives investors targeted exposure to natural gas-related companies when that part of the market is performing well.
Negative Factors
High Sector Concentration
With the vast majority of assets in the energy sector, the ETF is highly sensitive to swings in energy prices and industry-specific risks.
Limited Geographic Diversification
The portfolio is almost entirely invested in U.S. and Canadian companies, offering little protection if North American energy markets weaken.
Relatively High Expense Ratio
The fund’s expense ratio is on the higher side for an ETF, which means more of the returns are used to cover fees instead of going to investors.

FCG vs. SPDR S&P 500 ETF (SPY)

FCG Summary

The First Trust Natural Gas ETF (FCG) is an investment fund that follows the Nasdaq FactSet Natural Gas Index and focuses on U.S. and Canadian energy companies tied to natural gas. It holds firms involved in finding, producing, and transporting natural gas, including well-known names like ConocoPhillips and Occidental Petroleum. Someone might invest in FCG to bet on the long-term demand for natural gas and to get diversified exposure to many energy companies in a single purchase. A key risk is that it is heavily tied to the energy sector, so its price can swing a lot with changes in oil and gas prices.
How much will it cost me?The First Trust Natural Gas ETF (FCG) has an expense ratio of 0.57%, meaning you’ll pay $5.70 per year for every $1,000 invested. This is slightly higher than average because it is actively managed to focus on a specific niche within the energy sector, which requires more research and oversight compared to passively managed ETFs.
What would affect this ETF?The First Trust Natural Gas ETF (FCG) could benefit from increased demand for cleaner energy sources like natural gas as countries transition away from coal and oil, especially in North America where it has strong exposure. However, the ETF may face challenges from regulatory changes targeting fossil fuels, fluctuations in natural gas prices, or competition from renewable energy advancements, which could impact the performance of its top holdings such as EQT and Occidental Petroleum.

FCG Top 10 Holdings

FCG is essentially a pure play on U.S. energy, with the fund heavily tilted toward oil and gas producers and midstream names that live and die by commodity prices. Standouts like Permian Resources, EOG Resources, and Diamondback have been doing much of the heavy lifting, riding stronger operations and upbeat outlooks. Occidental and Devon look more mixed, with recent trading losing some steam despite solid fundamentals. On the flip side, EQT and Expand Energy have been lagging, acting as a bit of a headwind in an otherwise energy-charged portfolio.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Western Midstream Partners4.89%$31.59M$19.97B17.91%
80
Outperform
Hess Midstream Partners4.72%$30.50M$8.41B2.56%
77
Outperform
EOG Resources4.59%$29.64M$76.70B22.21%
78
Outperform
Conocophillips4.55%$29.39M$144.72B25.70%
78
Outperform
Diamondback4.28%$27.67M$57.11B41.42%
81
Outperform
Occidental Petroleum4.17%$26.93M$57.19B29.06%
67
Neutral
Permian Resources3.95%$25.55M$17.92B56.90%
81
Outperform
Devon Energy3.95%$25.54M$51.76B36.01%
79
Outperform
Ovintiv3.78%$24.43MC$23.93B53.51%
60
Neutral
EQT3.67%$23.70M$33.78B-1.18%
76
Outperform

FCG Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
28.26
Positive
100DMA
29.11
Positive
200DMA
26.47
Positive
Market Momentum
MACD
0.30
Negative
RSI
63.15
Neutral
STOCH
82.74
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FCG, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 27.46, equal to the 50-day MA of 28.26, and equal to the 200-day MA of 26.47, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 63.15 is Neutral, neither overbought nor oversold. The STOCH value of 82.74 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FCG.

FCG Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$641.99M0.59%
71
Outperform
$882.49M0.40%
71
Outperform
$576.89M0.38%
72
Outperform
$564.12M0.40%
74
Outperform
$497.62M0.35%
69
Neutral
$292.85M0.41%
73
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FCG
First Trust Natural Gas ETF
29.13
5.75
24.59%
TPYP
Tortoise North American Pipeline Fund
IEO
iShares U.S. Oil & Gas Exploration & Production ETF
RSPG
Invesco S&P 500 Equal Weight Energy ETF
ENFR
Alerian Energy Infrastructure ETF
DRLL
Strive U.S. Energy ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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